Together Gibraltar has noted with “cautious optimism” that the government closed the financial year with a projected surplus, bringing in more money via taxes and other revenue than was spent. The party says this is vital for Gibraltar in the face of so much international uncertainty and with a new relationship with the EU that will fundamentally change our economy. 

A statement continued: “Unfortunately, these record coffers have not translated into decisive action to support those most in need. 

“Housing and rental costs continue to outpace income growth across the Rock, with more Gibraltarians than ever forced to find to move over the border or put off starting a family. While we broadly welcome the public sector pay rise and the increase to the minimum wage, we believe it is deplorable that, in a nation as wealthy as ours, a full time job is still not enough to guarantee you a place to live or a decent quality of life. 

“This budget also continues the chronic underinvestment in our public services which are holding back our economic growth. While we acknowledge the government’s hesitation in borrowing to fund salaries, there is substantial evidence that strategic investment in public-service staff pays for itself through improved efficiencies and economic growth. The IMF has demonstrated that well-governed public investment boosts productivity and attracts private capital, generating higher long-term returns than what is initially spent. 

"This underinvestment also costs the government directly through an overreliance on emergency overtime and temporary cover, which continue to increase year-on-year.The reliance on temporary cover in the Department of Education alone cost the government over £2.5 million above forecasts. 

"Public services are part of our social infrastructure. Greater staffing and resources for our schools, hospitals and government counters would go a long way to growing our economy and making sure Gibraltar can be a permanent home for businesses and high-income professionals who are often seeking quality of life, not just low taxes. These new enterprises and skilled individuals will contribute to tax revenues, support local businesses and stimulate further growth. 

“Alongside workforce investment, Gibraltar must, as we continue to advocate, accelerate economic diversification to secure our economic independence. While Financial Services and Online Gaming remain pillars, emerging sectors such as sustainable tourism, green technology and creative industries have the opportunity to create well paid and rewarding jobs for locals, particularly those who do not necessarily have an academic background. 

“While we are grateful that individual ministers often lobby to bring over these kinds of industries, it is well past due that these efforts go hand-in-hand with public sector led initiatives to diversify our economy and secure our economic future. 

"Together Gibraltar were saddened but not surprised by the GSD’s response to the budget which once again seems to be calling for the same UK-style austerity which ruined lives and left public services in complete disarray. The GSD continues to offer no plan for growth, no plan to secure our economic independence, and no commitments to improve our public service. 

"Together Gibraltar will continue to campaign for affordable housing and robust public services for all. We will keep working on policies to strengthen Gibraltar’s economic independence, to deliver a living wage for every full time worker on the rock, and to sustainably invest in our public sector. We look forward to continuing to meet with stakeholders to ensure our economic policies are sound and will provide what’s right for business owners, workers, families and everyone who makes Gibraltar their home.”